Usefulness of Constructive Trusts
| Judicial remedies |
|---|
| Legal remedies (Damages) |
|
| Equitable remedies |
|
| Related issues |
|
For example, if the defendant steals $100,000 from the plaintiff and uses that money to buy a house, the court can trace the house back to the plaintiff's money, and can deem the house to be held in trust for the plaintiff; the defendant must then convey title to the house to the plaintiff - even if rising property values had appreciated the value of the house to $120,000 by the time the transaction occurred. If the value of the house had instead depreciated to $80,000, the plaintiff could demand a remedy at law (money damages equal to the amount stolen) instead of an equitable remedy.
The situation would be different if the defendant had mixed his own property with that of the plaintiff, for example, adding $50,000 of his own money to the $100,000 stolen from the plaintiff and buying a $150,000 house; or using plaintiff's $100,000 to add a room to defendant's existing house. The constructive trust would still be available, but in the proportions of the contributions, not wholly in the claimant's favour. Alternatively, the claimant could elect for an equitable lien instead, which is like a mortgage over the asset to secure repayment.
Because a constructive trust is an equitable device, the defendant can raise all of the available equitable defenses against it - including unclean hands, laches, detrimental reliance, and undue hardship.
Read more about this topic: Constructive Trust
Famous quotes containing the words usefulness of, usefulness, constructive and/or trusts:
“What I am anxious to do is to secure my legislation.... What I want to do is to get through that, and if I can point to a record of usefulness of that kind, I am entirely willing to quit office.”
—William Howard Taft (1857–1930)
“Human life consists in mutual service. No grief, pain, misfortune, or “broken heart,” is excuse for cutting off one’s life while any power of service remains. But when all usefulness is over, when one is assured of an unavoidable and imminent death, it is the simplest of human rights to choose a quick and easy death in place of a slow and horrible one.”
—Charlotte Perkins Gilman (1860–1935)
“Work is a responsibility most adults assume, a burden at times, a complication, but also a challenge that, like children, requires enormous energy and that holds the potential for qualitative, as well as quantitative, rewards. Isn’t this the only constructive perspective for women who have no choice but to work? And isn’t it a more healthy attitude for women writhing with guilt because they choose to compound the challenges of motherhood with work they enjoy?”
—Melinda M. Marshall (20th century)
“Baseball is the religion that worships the obvious and gives thanks that things are exactly as they seem. Instead of celebrating mysteries, baseball rejoices in the absence of mysteries and trusts that, if we watch what is laid before our eyes, down to the last detail, we will cultivate the gift of seeing things as they really are.”
—Thomas Boswell, U.S. sports journalist. “The Church of Baseball,” Baseball: An Illustrated History, ed. Geoffrey C. Ward, Knopf (1994)